Does Insurance Cover a Stolen Car?

Discovering that your car has been stolen can be a stressful and unsettling experience. Beyond the emotional toll, the financial impact can be significant, leaving you to wonder if your insurance policy will help recover some of the loss. 

The good news is that auto insurance often includes coverage for stolen vehicles, but the extent of coverage depends on your specific policy. At Ron Johnston Insurance, we’re here to explain how stolen car coverage works and what steps you should take if your car is stolen.

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What Type of Auto Insurance Covers a Stolen Car?

Not all auto insurance policies include coverage for stolen vehicles. To ensure you’re protected, you need comprehensive insurance as part of your auto policy.

• Comprehensive Coverage: This type of insurance covers non-collision-related incidents, including theft, vandalism, fire, and natural disasters. If your car is stolen, comprehensive coverage will help pay for the replacement or market value of the vehicle.
• Liability Insurance: Basic liability insurance, which is mandatory in Ontario, does not cover theft. It only provides coverage for damages or injuries you cause to others in an accident.

If you’re unsure whether your policy includes comprehensive coverage, check with your broker at Ron Johnston Insurance. Having the right coverage can provide peace of mind in the event of theft.

Related Article: What to Do After a Car Accident: Navigating the Claims Process

What Is Covered Under Comprehensive Insurance?

Comprehensive insurance covers the stolen vehicle and may include related expenses. Here’s what is typically covered:

• Vehicle Replacement: The insurer will pay for the actual cash value (ACV) of your car, which is its current market value minus depreciation.
• Damage from Attempted Theft: If the thief damages your vehicle while attempting to steal it, repairs may also be covered under comprehensive insurance.
• Stolen Parts: If specific parts of your car (e.g., tyres, stereo systems) are stolen, comprehensive coverage may help replace them.
• Rental Car Coverage: Some comprehensive policies offer rental reimbursement, covering the cost of a temporary vehicle while your claim is processed.

Items stolen from inside the car, such as personal belongings, are not covered by auto insurance. Instead, these may be claimed under a home or renters insurance policy.

Related Article: How Does Car Insurance Work in Ontario?

Steps to Take If Your Car Is Stolen

If your car has been stolen, acting quickly is crucial to improve the chances of recovery and ensure a smooth claims process. Follow these steps:

1. Contact the Police Immediately:
   • Report the theft to the police and provide all necessary information, including the car’s make, model, year, colour, license plate number, and VIN (Vehicle Identification Number).
   • Obtain a copy of the police report, as it will be required for your insurance claim.
2. Notify Your Insurance Broker:
   • Call your insurance provider or broker at Ron Johnston Insurance as soon as possible to report the theft. Provide all relevant details and a copy of the police report.
   • Your broker will guide you through the claims process and explain the next steps.
3. Inform Your Leasing or Financing Company:
   • If your car is leased or financed, notify the leasing or financing company about the theft.
4. Provide Necessary Documentation:
   • Be prepared to submit documents, including the police report, your insurance policy, car ownership papers, and any receipts for upgrades or accessories.
5. Work with the Adjuster:
   • Your insurance company will assign an adjuster to assess your claim and determine the actual cash value (ACV) of the vehicle.

Related Article: Does Liability Auto Insurance Cover Hit and Run?

What Happens If Your Car Is Recovered?

In some cases, stolen vehicles are recovered, but they may not be in the same condition as when they were taken. Here’s what happens:

• If the Car Is Damaged: Comprehensive coverage will help pay for repairs if your car is found but damaged.
• If the Car Is Declared a Total Loss: If the cost of repairs exceeds the vehicle’s value, the insurer will declare it a total loss and reimburse you for the ACV.
• If the Car Is Recovered After the Claim Is Settled: If your car is found after you’ve received a settlement, the insurance company will typically take ownership of the vehicle.

How to Prevent Car Theft

While having comprehensive insurance provides financial protection, preventing car theft is always the best approach. Here are some tips to keep your vehicle safe:

• Lock Your Doors: Always lock your car doors and close all windows, even when parked at home.
• Park in Well-Lit Areas: Choose secure, well-lit parking spots, preferably with surveillance cameras.
• Install Anti-Theft Devices: Use alarms, steering wheel locks, and GPS tracking systems to deter thieves.
• Avoid Leaving Valuables in Plain Sight: Items left visible inside the car can attract thieves.
• Keep Spare Keys Secure: Never leave spare keys inside or near your vehicle.

Taking these preventive measures can reduce the risk of theft and keep your vehicle safe.

Related Article: What Is Comprehensive Car Insurance?

Why Choose Ron Johnston Insurance for Auto Coverage?

At Ron Johnston Insurance, we understand the stress that comes with unexpected events like car theft. Our experienced brokers work closely with clients to ensure they have the right coverage to protect their vehicles and finances. 

Here’s why you can trust us:

• Personalized Policies: We tailor auto insurance policies to meet your unique needs, whether you need basic liability or comprehensive coverage.
• Expert Guidance: Our knowledgeable brokers explain your coverage options clearly and help you choose the right protection.
• Convenient Service: Manage your policies easily through our user-friendly customer portal and mobile app.
• Competitive Rates: We provide quality coverage at competitive prices, ensuring peace of mind without breaking the bank.

Protect Yourself Against Car Theft

Car theft can happen to anyone, but having the right auto insurance policy can help you recover financially and get back on the road quickly. Comprehensive insurance covers stolen cars, damaged vehicles, and even rental costs, ensuring you’re not left stranded.

At Ron Johnston Insurance, we specialize in providing personalized auto insurance solutions to protect you against life’s uncertainties. Don’t wait until it’s too late—ensure your car is covered with comprehensive insurance today.

Need help finding the right coverage? Contact Ron Johnston Insurance for expert advice and a free quote.